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DU Home » Latest Threads » Forums & Groups » Main » General Discussion (Forum) » Grocer, 70, gives stores ... » Reply #24

Response to Lucky Luciano (Reply #19)

Fri Nov 30, 2012, 06:53 PM

24. That is an assumption. There is no value until the loans are paid off.


And their pensions or 401K's are very likely to be collateral, and very, very likely to be underfunded, and thus another liability.

How about an analogy?

"Hey mom, I am giving you my house that I can't sell. I took out a new mortgage and took all the cash, but I am GIVING you the home, and the mortgage for you to pay. You should be able to sell it for a profit in a few years. Because they never go down, the Bernanke said so. Regardless, I got money, and it's gonna be a GREAT Christmas".

From a financial perspective he gave an asset, attached to several liabilities, got paid, and it may or may not work out for them. He and his family walk away with a few million, but it will be years before most of the employees know whether they get anything but a paycheck from this, except for, perhaps, a few that retire earlier.

And despite what was said, there is nothing out there that indicates there was ever any offer for the business from anyone else, which is very likely in such a competitive and likely to fail arena. So he and the family took the out that would give them some serious cash, and left whatever happens in the future with others.

You can drive down the street in just the town I am in and I can show you four major groceries sitting empty, all different names, all with more resources than this gentleman had, all failed. And they are all over the country, just takes a little web searching.

Again, not dissing the deal, but people are leaving out a bunch of really important reality to fluff up a story. And that's bullshit.

But nothing new. People see saints in the impressions in their taco sauce, so it doesn't surprise me that people make up their own reality about this deal either. Hey, 47% voted for RobMe - if that doesn't support a theory of mass delusion, I don't know what does.

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Arrow 44 replies Author Time Post
Liberal_in_LA Nov 2012 OP
yellerpup Nov 2012 #1
Booster Nov 2012 #22
yellerpup Nov 2012 #29
awoke_in_2003 Dec 2012 #38
OneGrassRoot Nov 2012 #2
LadyHawkAZ Nov 2012 #3
ChisolmTrailDem Nov 2012 #4
Barack_America Nov 2012 #5
HiPointDem Nov 2012 #6
jtuck004 Nov 2012 #10
Lucky Luciano Nov 2012 #19
LineLineLineLineReply That is an assumption. There is no value until the loans are paid off.
jtuck004 Nov 2012 #24
Lucky Luciano Nov 2012 #27
jtuck004 Nov 2012 #32
HiPointDem Nov 2012 #21
freshwest Nov 2012 #7
itsrobert Nov 2012 #15
japple Nov 2012 #20
freshwest Dec 2012 #42
awoke_in_2003 Dec 2012 #39
adieu Nov 2012 #8
Caeser67 Nov 2012 #9
femrap Nov 2012 #11
sabrina 1 Nov 2012 #12
blackspade Nov 2012 #13
midnight Nov 2012 #14
MotherPetrie Nov 2012 #16
rivegauche Nov 2012 #17
dionysus Nov 2012 #18
Iggy Nov 2012 #23
Shankapotomus Nov 2012 #28
Iggy Nov 2012 #30
flying-skeleton Nov 2012 #25
Democratopia Nov 2012 #26
ElboRuum Nov 2012 #31
glinda Dec 2012 #33
saidsimplesimon Dec 2012 #34
zaj Dec 2012 #35
Lucky Luciano Dec 2012 #41
calimary Dec 2012 #36
Odin2005 Dec 2012 #37
high density Dec 2012 #40
limpyhobbler Dec 2012 #43
AverageJoe90 Dec 2012 #44
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